GOKAK TEXTILES 2022-23 Annual Report Analysis

Tue, 27 Jun

GOKAK TEXTILES has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

GOKAK TEXTILES Income Statement Analysis

• Operating income during the year fell 33.1% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a fall and down at 22.2% in FY23 as against 6.2% in FY22.
• Depreciation charges decreased by 5.7% and finance costs decreased by 53.5% YoY, respectively.
• Other income declined by 15.2% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 25.0% in FY22 to 7.4% in FY23.

GOKAK TEXTILES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	1,258	842	-33.1%
Other income	Rs m	43	37	-15.2%
Total Revenues	Rs m	1,302	879	-32.5%
Gross profit	Rs m	-79	187	NA
Depreciation	Rs m	65	61	-5.7%
Interest	Rs m	215	100	-53.5%
Profit before tax	Rs m	-315	63	NA
Tax	Rs m	0	0	0.0
Profit after tax	Rs m	-315	63	NA
Gross profit margin	%	-6.2	22.2
Effective tax rate	%	0.0	0.0
Net profit margin	%	-25.0	7.4

Don't Miss: Key Information for Long-term Investors

GOKAK TEXTILES Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 1 billion as compared to Rs 1 billion in FY22, thereby witnessing an decrease of -4.8%.
• Long-term debt down at Rs 1 billion as compared to Rs 2 billion during FY22, a fall of 11.4%.
• Current assets fell 33% and stood at Rs 214 million, while fixed assets fell 7% and stood at Rs 815 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 1 billion as against Rs 1 billion during FY22, thereby witnessing a fall of 14%.

GOKAK TEXTILES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	-1,578	-1,518	NA
Current Liabilities	Rs m	1,091	1,039	-4.8
Long-term Debt	Rs m	1,683	1,492	-11.4
Total Liabilities	Rs m	1,197	1,029	-14.1
Current assets	Rs m	320	214	-33.1
Fixed Assets	Rs m	876	815	-7.0
Total Assets	Rs m	1,197	1,029	-14.1

GOKAK TEXTILES Cash Flow Statement Analysis

• GOKAK TEXTILES's cash flow from operating activities (CFO) during FY23 stood at Rs -44 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 81 million, an improvement of 392.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -42 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -6 million from the Rs -14 million net cash flows seen during FY22.

GOKAK TEXTILES Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	-72	-44	-
Cash Flow from Investing Activities	Rs m	16	81	392.0%
Cash Flow from Financing Activities	Rs m	41	-42	-
Net Cash Flow	Rs m	-14	-6	-

Current Valuations for GOKAK TEXTILES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.6, an improvement from the EPS of Rs -48.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 32.3, stands at 3.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -0.1 times, while the price to sales ratio stands at 0.2 times.
• The company's price to cash flow (P/CF) ratio stood at 1.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	193.6	129.6
TTM Earnings per share	Rs	-48.4	9.6
Diluted earnings per share	Rs	-48.4	9.6
Price to Cash Flow	x	-0.7	1.4
TTM P/E ratio	x	-0.6	3.4
Price / Book Value ratio	x	-0.1	-0.1
Market Cap	Rs m	184	178
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for GOKAK TEXTILES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.2x during FY23, from 0.3x during FY22. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 1.6x during FY23, from -0.5x during FY22. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at -4.1% during FY23, from 19.9% during FY23. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at -633.2% during FY23, from -95.0% during FY22. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 15.8% during FY23, from -8.3% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	0.3	0.2
Debtors’ Days	Days	116	90
Interest coverage	x	-0.5	1.6
Debt to equity ratio	x	-1.1	-1.0
Return on assets	%	-8.3	15.8
Return on equity	%	19.9	-4.1
Return on capital employed	%	-95.0	-633.2

To see how GOKAK TEXTILES has performed over the last 5 years, please visit here.

GOKAK TEXTILES Share Price Performance

Over the last one year, GOKAK TEXTILES share price has moved up from Rs 0.0 to Rs 32.3, registering a gain of Rs 32.3 or around 0.0%.

Overall, the S&P BSE SENSEX is up 20.9% over the year.

(To know more, check out historical annual results for GOKAK TEXTILES and quarterly results for GOKAK TEXTILES)